Sun Country Airlines (SNCY) Q3 2024 earnings summary

Executive summary

• Achieved ninth consecutive profitable quarter with record Q3 revenue of $249.5 million, up 0.2% year-over-year, despite operational disruptions from hurricanes and IT outages.

• Net income for Q3 2024 was $2.3 million, down 69% year-over-year, with adjusted diluted EPS of $0.06.

• Diversified business model with strong charter and cargo segments offsetting scheduled service weakness.

• Operating expenses increased 3% year-over-year, mainly from higher salaries, maintenance, and airport fees.

• Adjusted operating income margin was 5.6% for Q3 2024, down from 8.1% in Q3 2023.

Financial highlights

• Q3 total revenue was $249.5 million, flat year-over-year; net income was $2.3 million, down 69% from Q3 2023.

• Charter revenue grew 7% to $51 million, a new quarterly high; cargo revenue increased 11.9% to $29.2 million.

• Q3 2024 EPS: $0.04 (basic and diluted); adjusted EBITDA for Q3: $37.6 million (15.1% margin).

• Total operating revenues for nine months 2024: $815.3 million, up 1.4% year-over-year.

• Q3 2024 CASM: 12.58¢; adjusted CASM: 8.04¢, up 3.7% year-over-year.

Outlook and guidance

• Q4 total revenue expected between $250–$260 million on block hour growth of 2–5%.

• Q4 operating margin projected between 7% and 9%; effective tax rate at 23%.

• Scheduled service ASMs expected to grow slightly over 3% in Q4 2024; TRASM expected to be flat or up low single digits.

• Additional cargo aircraft to be added in 2025, with first entering service in late March or early April.

• Sufficient liquidity and capital resources are expected to fund operations and debt obligations for at least the next twelve months.